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PEER COMPANIES

The Nifty50 index opened with gap up on Wednesday and finally negated the formation of lower highs after eight consecutive trading sessions. It corrected around 500 points from previous swing high of 11,118 and took support at its horizontal trend line, which was formed by connecting the swings lows of 10,534, 10,583 and 10,585 levels.

The index formed a bullish candle on daily scale, which signalled some buying at lower levels. Now it has to surpass and hold above the 10,750-10,777 zone to extend its gains towards 10,820 and then 10,888 levels, while on the downside, support is seen at 10,580 level.

On the options front, maximum Put open interest was at strike price 10,400 followed by 10,700 while maximum Call OI was at 11,000 followed by 10,800. Meaningful Put Writing was seen at strike price 10,600 followed by 10,700 while Call unwinding was seen at all immediate strike prices. The option band signified a trading range between 10,600 and 10,900 levels.

India VIX fell 7.66 per cent to 17.06 mark. Now, VIX needs to cool off below 16.50-16 zone to see short-term stability in the market.

Bank Nifty opened in the positive and managed to hold its gains for the entire session. It formed an Inside Bar on a daily scale, which suggests follow-up buying was missing on either side. Now it has to surpass and sustain above 27,000 level to extend its gains towards 27,250 and then 27,500 levels, while on the downside, supports were seen at 26,850 and then 26,666 levels.

Nifty futures closed in the positive at 10,758 with a gain of 1.34 per cent. Long buildup was seen in JSW Steel, KPIT, IndiGo and Jindal Steel while shorts were seen in KSCL, Jubilant Foodworks, DCB Bank and TVS Motor.

(Chandan Taparia is Technical & Derivative Analyst at MOFSL. Investors are advised to consult financial advisers before taking an investment calls based on these observations)

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)